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2017 (3) TMI 1331 - AT - Income TaxSale of shares - capital gain or business income - Held that:- When the share sold in the current year was carried forward and the substantial gain was earned by the assessee only from sale of two scripts. And for earlier years the Revenue has accepted the STCG on similar transaction, in our considered opinion, the income earned by assessee can only be taxed as “Capital Gain”. Hence, the ground no.1 raised by assessee is allowed. Disallowance u/s 14A - Held that:- CIT(A) concluded that assessee could not establish the nexus between the capital invested in securities and the borrowed loan. All the funds were hotchpotch and confirmed the disallowance. Considering the peculiarity of the fact that the assessee earned only a sum of ₹ 1,10,518/- as exempt income. The assessee has sufficient funds and earned interest income of ₹ 3,55,692/-. Thus, we respectfully following the decision of coordinate bench in Vahanvati Consultants P. Ltd. vs. DCIT (2016 (8) TMI 365 - ITAT MUMBAI), restrict the disallowance u/s 14A to ₹ 1,10,518/-.
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